Primo Brands Raises Annual Sales Outlook Following Strong Second Quarter

The company’s quarterly results exceeded internal expectations, aided by an earlier-than-anticipated rebound in its Direct Delivery segment. Chairman and CEO Eric Foss attributed the momentum to improved operational execution and stronger business fundamentals, despite ongoing inflationary pressures. While net sales climbed, gross margin tightened slightly to 30.5% from 31.3%, largely due to rising transportation costs and depreciation expenses.

Primo Brands reported net income of $69.2 million for the period ending June 30, a significant improvement over the $30.5 million recorded in the same quarter last year. Adjusted EBITDA rose 5% to $385 million, with margins expanding by 20 basis points to 21.4%. Following these results, the company reaffirmed its annual Adjusted EBITDA guidance of $1.465 billion to $1.515 billion, while lifting its net sales growth forecast to a range of 2% to 4%.